2012 wintec annual report

FINANCE, CAPITAL ASSETS AND PERFORMANCE
The following indicators represent the financial performance of
the Wintec Parent. We intend to achieve a position of financial
viability and on-going sustainability to support our reputation
as an efficient, effective and modern organisation. We have
set ourselves on a path of continuous modernisation and the
targets set out below represent our expected revenue streams,
expenditure, and debt facility.
The improved revenue streams are predominately driven by higher
tuition fees and other revenue streams, and this has resulted in
our better than target operating surplus. There has been some
increase in costs associated with obtaining the increased revenue.
In 2012, we instigated a set of activities focused on energy
efficiency and waste minimisation. Following a comprehensive
external audit, our energy initiatives have achieved a 4% gas and
power saving; we have increased the fuel efficiency and decreased
the carbon emissions of our vehicle fleet; decreased our paper
usage and increased our recycling. For 2013 we will target further
savings in this area.
As part of our modernisation programme and commitment to
providing quality technology services to our students, staff and
community we met the target of getting wireless internet coverage
throughout 85% of our campuses.
Indicator(s)
Operating surplus
before revaluations,
land sales and
asset disposals/
write downs (%)
EBITDA (Earnings
before interest,
tax, depreciation,
amortisation and
abnormals) ($m)
TEO risk rating
against the Financial
Monitoring Framework
Percentage of agreed
TEC SAC funding
Domestic fees
revenue ($m)
International fees
revenue ($m)
Audited 2011
Outcome
Target
2012
Outcome
Comment
5.1% 3.0% + 4.5% Target exceeded though increased
revenue stream from student fees (volume
growth) and contained delivery costs.
10.7 10.1 11.0 Achieved.
Low Low Low Current rating by TEC for 2011 is Low. We
have forecast our 2012 position as low
due to the improved operating surplus.
100% 100% 100% Achieved.
18.8 18.2 20.7 Increased proportion of students in higherfee
programmes than assumed in budget.
7.5 8.5 9.0 Achieved.
ITO revenue ($m) 2.8 3.8 2.5 Combination of lower numbers and
reduced class occurrences as ITO trainee
numbers continued to decline in 2012.
Total revenue ($m) 81.2 83.6 85.8 Outcome due to higher fees revenue
than assumed and the receipt of other
revenues confirmed after the budget was
set (which also resulted in higher than
budgeted expenditure - see below).
Personnel ($m) 46.7 46.4 46.3 At target.